GBP/USD Price Analysis – March 12, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair struggled to maintain its upward momentum, retreating near the 1.2914 level.
The pair is now hovering around 1.2942 as the US Dollar gains temporary support ahead of key inflation data from the United States.
However, the US Consumer Price Index (CPI) data for February, due at 12:30 GMT, is set to be a major driver for market expectations regarding the Federal Reserve’s (Fed) monetary policy stance.
Investors remain cautious after Fed Chair Jerome Powell recently signaled that the central bank could maintain its restrictive policy for longer if inflation does not ease as expected.
Market forecasts suggest that headline inflation may slow to 2.9% from 3.0% in January, while core CPI is expected to rise by 3.2%, slightly down from 3.3%.
If inflation cools, expectations for a Fed rate cut in May could grow, with the CME FedWatch Tool showing a 42% chance—up from 10.4% last month.
However, higher-than-expected inflation could reduce these chances, strengthening the US Dollar and limiting the Pound’s gains.
GBP/USD Supported by BoE Rate Expectations and Upcoming UK Economic Data
Despite some pressure on GBP/USD, the Pound is still supported by expectations that the Bank of England (BoE) will keep its interest rate at 4.5% during next week’s policy meeting.
Several BoE officials, including Governor Andrew Bailey, have stressed the need for a cautious approach to reducing restrictive policies, pointing to ongoing inflation concerns.
However, BoE member Catherine Mann has suggested a more aggressive approach to easing due to the volatility in global financial markets.
Moreover, traders are keeping an eye on the UK’s upcoming economic data, including the January Gross Domestic Product (GDP) report and Industrial and Manufacturing Production figures, scheduled for release on Friday.
The UK economy is expected to have expanded by 0.1% in January, down from 0.4% in December, while factory data is likely to show a decline.
Market Uncertainty and Key Data Events Ahead for GBP/USD
Adding to market uncertainty is former US President Donald Trump’s position on trade policies. His recent threats to double tariffs on Canadian steel and aluminum imports caused concern among investors.
However, the decision was reversed after talks with Canadian officials. US Commerce Secretary Howard Lutnick explained that Trump’s tariff threats are often used as bargaining tactics in trade negotiations. Still, the unpredictability of these policies continues to affect market sentiment.
Looking ahead, GBP/USD traders will closely monitor the US inflation report and upcoming UK economic data for further direction.
However, the softer inflation print from the US could weaken the Dollar and support GBP/USD, while strong inflation figures might reinforce the Fed’s hawkish stance, limiting the Pound’s upside potential.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.29285, showing slight downward pressure but maintaining stability above the key pivot point at $1.29094. The 50-day EMA at $1.29086 reinforces this level, suggesting that staying above it could keep the pair in a bullish zone.
On the upside, immediate resistance is at $1.29655, followed by $1.30114 and $1.30606. A break above $1.29655 could spark further upside momentum, with traders eyeing the psychological $1.30 level as a potential inflection point. However, failing to surpass resistance may lead to continued range-bound movement.
Support levels lie at $1.28691, $1.28206, and $1.27756. A drop below $1.28691 could indicate renewed selling pressure, possibly pushing the pair toward $1.28206, where stronger demand could emerge. The 50-day EMA at $1.29086 is a key short-term threshold—if breached, it could shift sentiment to the downside.
A buy strategy above $1.29094 is preferred, targeting $1.29788 while maintaining a stop-loss at $1.28740 to mitigate risk.
Related News
- GOLD Price Analysis – March 12, 2025
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD must hold above $1.29094 to sustain a bullish bias, with $1.29655 as the next major resistance level.
- The 50-day EMA at $1.29086 acts as key support—a break below could accelerate losses toward $1.28691 and lower.
- A buy setup above $1.29094 with take-profit at $1.29788 and stop-loss at $1.28740 aligns with the current trend structure.
The GBP/USD pair is trading at $1.29285, showing slight downward pressure but maintaining stability above the key pivot point at $1.29094. The 50-day EMA at $1.29086 reinforces this level, suggesting that staying above it could keep the pair in a bullish zone.
On the upside, immediate resistance is at $1.29655, followed by $1.30114 and $1.30606. A break above $1.29655 could spark further upside momentum, with traders eyeing the psychological $1.30 level as a potential inflection point. However, failing to surpass resistance may lead to continued range-bound movement.
Support levels lie at $1.28691, $1.28206, and $1.27756. A drop below $1.28691 could indicate renewed selling pressure, possibly pushing the pair toward $1.28206, where stronger demand could emerge. The 50-day EMA at $1.29086 is a key short-term threshold—if breached, it could shift sentiment to the downside.
A buy strategy above $1.29094 is preferred, targeting $1.29788 while maintaining a stop-loss at $1.28740 to mitigate risk.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.29094
Take Profit – 1.29788
Stop Loss – 1.28740
Risk to Reward – 1: 1.9
Profit & Loss Per Standard Lot = +$694/ -$354
Profit & Loss Per Mini Lot = +$69/ -$35
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD faces key resistance at $1.30286; a breakout could lead to $1.30893 and $1.31531.
- Immediate support at $1.28691; a break below could push the pair toward $1.28031 and $1.27444.
- 50-day EMA ($1.27504) remains a critical support level, maintaining the overall uptrend.
The GBP/USD pair remains in a steady uptrend but is showing signs of consolidation after failing to break above $1.29446, the pivot point level.
The pair is currently trading around $1.29131, hovering near key technical levels as traders assess broader market conditions.
On the upside, immediate resistance stands at $1.30286, with a break above this level potentially driving the pair toward $1.30893 and $1.31531, where sellers may emerge.
However, the pair is struggling to sustain upward momentum, and without a decisive breakout, further upside may remain limited in the short term.
Conversely, immediate support is found at $1.28691, aligning with recent pullback levels. A break below this could open the door for a decline toward $1.28031 and potentially $1.27444, where buyers may attempt to re-enter the market.
The 50-day EMA at $1.27504 serves as a critical dynamic support level, reinforcing the overall uptrend.
Fundamentally, traders remain cautious ahead of key U.S. inflation data, which could shift expectations on Federal Reserve rate cuts.
A stronger-than-expected CPI report may boost the U.S. dollar, putting pressure on GBP/USD, while weaker inflation data could reignite buying interest in the pound.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.29437
Take Profit – 1.28664
Stop Loss – 1.29871
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$773/ -$434
Profit & Loss Per Mini Lot = +$77/ -$43
GBP/USD Price Analysis – March 10, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair maintained its bullish trend and remained well bid above the 1.2900 level.
However, the bullish rally was supported by a weaker US Dollar, which lost traction mainly due to growing concerns over the US economic outlook.
On the other hand, the GBP/USD pair's gains could be limited due to the Bank of England's cautious stance and potential rate cuts, as traders focus on upcoming UK GDP and US CPI data.
US Dollar Struggles Amid Economic Concerns and Market Expectations for Fed Action
On the US front, the US dollar has struggled to gain strength as concerns about the economy grow. US President Donald Trump’s comments last Friday added to these worries. He said his "America First" policies might cause short-term economic problems.
Trump mentioned that the US is going through a "period of transition" and didn't rule out the possibility of a recession. This follows recent tariffs of 25% on Canada and Mexico and a 10% increase in taxes on Chinese imports.
Meanwhile, market analysts have changed their view on Trump’s policies, now seeing them as potentially harmful to economic growth instead of boosting it.
Goldman Sachs lowered its Q4 2025 GDP growth forecast to 1.7% from 2.2% and increased the chance of a recession next year to 20%.
These concerns have led to speculation that the Federal Reserve might need to start easing its policies again, possibly as soon as June.
Moving on, investors are waiting for upcoming economic data, like the US JOLTS Job Openings report, which could affect the Fed’s decisions.
However, US Fed Chair Jerome Powell recently said the central bank will wait for more clarity on Trump’s economic policies before making any changes to interest rates.
BoE's Cautious Approach and Market Focus on Upcoming Economic Data
On the other hand, the Bank of England (BoE) has taken a more cautious approach. Although there is some pressure on the Pound, BoE member Catherine Mann questioned the need for gradual interest rate cuts due to global economic uncertainty.
Despite this, traders are still expecting two rate cuts this year. These mixed signals from both the Fed and the BoE have kept investors focused on upcoming economic data, especially the UK GDP report for January and the US Consumer Price Index (CPI) for February, both of which could affect future monetary policy decisions.
GBP/USD – Technical Analysis
The GBP/USD pair remains in a steady uptrend but is showing signs of consolidation after failing to break above $1.29446, the pivot point level.
The pair is currently trading around $1.29131, hovering near key technical levels as traders assess broader market conditions.
On the upside, immediate resistance stands at $1.30286, with a break above this level potentially driving the pair toward $1.30893 and $1.31531, where sellers may emerge.
However, the pair is struggling to sustain upward momentum, and without a decisive breakout, further upside may remain limited in the short term.
Conversely, immediate support is found at $1.28691, aligning with recent pullback levels. A break below this could open the door for a decline toward $1.28031 and potentially $1.27444, where buyers may attempt to re-enter the market.
The 50-day EMA at $1.27504 serves as a critical dynamic support level, reinforcing the overall uptrend.
Fundamentally, traders remain cautious ahead of key U.S. inflation data, which could shift expectations on Federal Reserve rate cuts.
A stronger-than-expected CPI report may boost the U.S. dollar, putting pressure on GBP/USD, while weaker inflation data could reignite buying interest in the pound.
Related News
- GOLD Price Analysis – March 10, 2025
GBP/USD Price Analysis – March 05, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair maintained its bullish trend and remained well bid around the 1.2830 level, hitting an intra-day high of 1.2855.
The bullish momentum was driven by traders assessing the Bank of England’s (BoE) monetary policy outlook and increasing expectations of Federal Reserve (Fed) rate cuts, alongside a weaker US Dollar due to political and economic uncertainties.
BoE Governor's Testimony and Cautious Rate Cut Outlook Weigh on GBP/USD Volatility
On the GBP front, the BoE Governor Andrew Bailey’s testimony before Parliament’s Treasury Committee at 14:30 GMT is in focus.
Investors are keen to hear the BoE’s views on interest rates after the central bank cut borrowing costs by 25 basis points (bps) to 4.5% in February, signaling a slow and cautious approach to future cuts.
The BoE also warned that rising energy prices in Q3 could push inflation temporarily higher, delaying its return to the 2% target.
Traders anticipate two more BoE rate cuts this year but remain cautious as businesses may pass on increased employment costs, particularly after the government’s decision to raise employer National Insurance (NI) contributions in the Autumn Budget. These inflationary pressures could limit the BoE’s ability to implement aggressive rate cuts.
Therefore, the cautious stance from the BoE and concerns over inflationary pressures may limit GBP strength, keeping the GBP/USD pair volatile as traders assess future rate cut expectations.
US Dollar Weakens on Trump’s Tariff Policies and Fed Rate Cut Bets
On the US front, the US dollar losing its traction, with the US Dollar Index (DXY) slipping near 105.00, as concerns over former President Donald Trump’s proposed tariff policies weighed on sentiment.
His plans to impose a 25% levy on Canadian and Mexican imports and a 10% tariff on Chinese goods have raised fears of increased costs for consumers, which could weaken household purchasing power and slow economic growth.
Meanwhile, the expectations of Fed rate cuts continue to increase as the recent weak US economic data has fueled speculation that the Fed may lower interest rates in June, with CME FedWatch data showing the probability of a cut rising to 80% from 70% a week ago.
Moving ahead, traders will keep their eyes on the US ADP Employment Change and ISM Services PMI data for more clues about the labor market. Apart from this, the Friday’s US Nonfarm Payrolls (NFP) report will also be important for predicting future Fed policy.
GBP/USD – Technical Analysis
The GBP/USD pair is trading at $1.27896, holding onto slight gains as it tests key technical levels. The pivot point at $1.27752 is a crucial support zone, with buyers maintaining control above this threshold. The 50-day EMA at $1.26605 indicates a strong bullish foundation, reinforcing upward momentum.
If the pair breaks above $1.27740, bullish momentum could accelerate toward $1.28689, the first major resistance level. A breakout above this could extend gains to $1.29481, with a further bullish target at $1.30478, last seen during recent uptrends. Strong volume confirmation above $1.28701 would signal a continued bullish breakout.
On the downside, immediate support rests at $1.26792, with a break below this level likely shifting sentiment in favor of sellers. Further weakness could expose GBP/USD to $1.25663, and deeper losses could test $1.24667, where long-term buyers may step in.
The technical outlook favors a bullish stance, provided GBP/USD holds above the $1.27752 pivot. A confirmed break above $1.28689 could set the stage for further gains, while a drop below $1.26792 may trigger selling pressure.
Related News
- GOLD Price Analysis – March 05, 2025
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD remains bullish above $1.27752, targeting $1.28689 resistance.
- A drop below $1.26792 may shift sentiment, exposing $1.25663 support.
- 50-day EMA at $1.26605 provides a strong support base for buyers.
The GBP/USD pair is trading at $1.27896, holding onto slight gains as it tests key technical levels. The pivot point at $1.27752 is a crucial support zone, with buyers maintaining control above this threshold. The 50-day EMA at $1.26605 indicates a strong bullish foundation, reinforcing upward momentum.
If the pair breaks above $1.27740, bullish momentum could accelerate toward $1.28689, the first major resistance level. A breakout above this could extend gains to $1.29481, with a further bullish target at $1.30478, last seen during recent uptrends. Strong volume confirmation above $1.28701 would signal a continued bullish breakout.
On the downside, immediate support rests at $1.26792, with a break below this level likely shifting sentiment in favor of sellers. Further weakness could expose GBP/USD to $1.25663, and deeper losses could test $1.24667, where long-term buyers may step in.
The technical outlook favors a bullish stance, provided GBP/USD holds above the $1.27752 pivot. A confirmed break above $1.28689 could set the stage for further gains, while a drop below $1.26792 may trigger selling pressure.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.27740
Take Profit – 1.28701
Stop Loss – 1.27092
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$961/ -$648
Profit & Loss Per Mini Lot = +$96/ -$64
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- GBP/USD remains bearish below $1.26228, with key resistance at $1.26896.
- The 50-day EMA at $1.26304 serves as a critical barrier for buyers.
- Sell entry below $1.26217, target $1.25363, stop-loss at $1.26894.
The GBP/USD pair is trading at $1.26002, down 0.01%, as the British pound struggles to hold ground against a resilient U.S. dollar. With the pair positioned just below the pivot point of $1.26228, the short-term outlook leans slightly bearish.
Immediate resistance is seen at $1.26896, followed by $1.27505 and $1.28060. A break above $1.26228 would shift sentiment bullish, with the 50-day EMA at $1.26304 acting as a key hurdle for buyers. However, sustained weakness below this level may reinforce further downside.
On the support side, $1.25586 serves as the first line of defense, with $1.25087 and $1.24528 providing deeper support zones. If the pair breaks below $1.25586, the decline could accelerate, potentially reaching the $1.25087 level, which aligns with previous consolidation areas.
From a technical perspective, the 50-day EMA at $1.26304 is acting as dynamic resistance. A sell entry below $1.26217 is favored, with a take-profit target at $1.25363 and a stop-loss at $1.26894 to cap risk.
GBP/USD - Trade Ideas
Entry Price – Sell Below 1.26217
Take Profit – 1.25363
Stop Loss – 1.26894
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$854/ -$677
Profit & Loss Per Mini Lot = +$85/ -$67
GBP/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Above $1.26211: Holding above the pivot targets $1.26896 and $1.27569, indicating continued upward momentum.
- Bearish Below $1.26211: A breakdown could see declines towards $1.25660 and $1.25087, signaling a potential bearish reversal.
- Technical Setup: 50 EMA at $1.26219 acts as dynamic support, reinforcing short-term bullish sentiment.
GBP/USD is trading at $1.26528, down 0.01%, reflecting a cautious sentiment as it hovers above the pivot point at $1.26211. The pair is trading slightly above the 50 EMA at $1.26219, signaling short-term bullish momentum.
If the price maintains its position above the pivot, the next target is immediate resistance at $1.26896. A break above this level could push prices towards $1.27569, with a further move towards $1.28233 if bullish momentum continues.
On the downside, if GBP/USD breaks below the pivot at $1.26211, it would shift sentiment to bearish, targeting immediate support at $1.25660.
A deeper decline could see the pair testing $1.25087, with a more substantial floor at $1.24528 if selling pressure intensifies. The 50 EMA at $1.26219 acts as dynamic support, and a break below this level would confirm a bearish reversal.
The technical outlook suggests a cautious buy above the pivot at $1.26218, targeting $1.27126 with a stop loss at $1.25869.
This setup aligns with the short-term bullish bias while maintaining a favorable risk-reward ratio. Traders should watch for volume confirmation and price action around the $1.26896 resistance to validate the bullish momentum.
Conversely, a break below $1.26211 would invalidate the bullish setup and shift sentiment to bearish, likely driving prices towards $1.25660 and beyond.
GBP/USD - Trade Ideas
Entry Price – Buy Above 1.26218
Take Profit – 1.27126
Stop Loss – 1.25869
Risk to Reward – 1: 2.6
Profit & Loss Per Standard Lot = +$908/ -$349
Profit & Loss Per Mini Lot = +$90/ -$34
GBP/USD Price Analysis – Feb 26, 2025
Daily Price Outlook
During the European trading session, the GBP/USD pair extended its losses and hovered near 1.2640 as the US Dollar strengthened.
The US Dollar Index (DXY) rebounded strongly from an 11-week low of 106.10, regaining momentum and exerting pressure on the British Pound.
Dovish BoE Comments Weigh on GBP
The British Pound faced selling pressure after dovish remarks from Bank of England (BoE) Monetary Policy Committee (MPC) member Swati Dhingra. Speaking at Birkbeck on Monday, Dhingra expressed concerns about "weakness in consumption" and advocated for aggressive monetary policy easing.
While markets have priced in two rate cuts by the BoE this year, Dhingra suggested that more than four cuts might be necessary to avoid an excessively restrictive stance.
Earlier this month, the BoE lowered borrowing rates by 25 basis points (bps) to 4.5% and guided a gradual easing approach.
However, the central bank also halved its GDP forecast for the year to 0.75% and warned of a potential temporary rise in inflation during Q3 due to higher energy costs.
The uncertain UK economic outlook, coupled with potential US tariffs from former President Donald Trump, further dampened investor confidence in the Pound.
US Dollar Strengthens on Rising Yields and Fiscal Developments
On the US front, the US dollar rebounded as US Treasury yields recovered from a five-day losing streak. The 10-year US Treasury yield climbed to 4.33% after hitting a fresh two-month low of 4.28% earlier in the Asian session.
The rise in yields was supported by the House of Representatives advancing a $4.5 trillion tax cut plan, which includes provisions for border security, energy deregulation, and increased military spending.
The injection of significant liquidity into the economy raised inflation concerns, prompting speculation that the Federal Reserve may keep interest rates elevated for longer.
Meanwhile, weak US S&P Global PMI data for February heightened expectations of Fed rate cuts. The latest flash PMI report showed that the US service sector contracted for the first time in over two years.
As a result, traders increased their bets on a Fed rate cut in June, with the probability rising to 65% from 47% a week ago, according to the CME FedWatch tool. However, markets remain convinced that the Fed will maintain its current borrowing rate of 4.25%-4.50% through the March and May meetings.
Key Data Releases Ahead
Looking ahead, investors will closely watch the upcoming US Durable Goods Orders data on Thursday and the Personal Consumption Expenditures (PCE) Price Index report on Friday.
The PCE inflation data will be a crucial factor in shaping market expectations for the Fed’s monetary policy outlook, potentially influencing the GBP/USD pair's movement in the coming sessions.
GBP/USD – Technical Analysis
GBP/USD is trading at $1.26528, down 0.01%, reflecting a cautious sentiment as it hovers above the pivot point at $1.26211. The pair is trading slightly above the 50 EMA at $1.26219, signaling short-term bullish momentum.
If the price maintains its position above the pivot, the next target is immediate resistance at $1.26896. A break above this level could push prices towards $1.27569, with a further move towards $1.28233 if bullish momentum continues.
On the downside, if GBP/USD breaks below the pivot at $1.26211, it would shift sentiment to bearish, targeting immediate support at $1.25660.
A deeper decline could see the pair testing $1.25087, with a more substantial floor at $1.24528 if selling pressure intensifies. The 50 EMA at $1.26219 acts as dynamic support, and a break below this level would confirm a bearish reversal.
The technical outlook suggests a cautious buy above the pivot at $1.26218, targeting $1.27126 with a stop loss at $1.25869.
This setup aligns with the short-term bullish bias while maintaining a favorable risk-reward ratio. Traders should watch for volume confirmation and price action around the $1.26896 resistance to validate the bullish momentum.
Conversely, a break below $1.26211 would invalidate the bullish setup and shift sentiment to bearish, likely driving prices towards $1.25660 and beyond.
Related News
- GOLD Price Analysis – Feb 26, 2025
GBP/USD Price Analysis – Feb 24, 2025
Daily Price Outlook
During the European trading session, the GBP/USD currency pair gained strong upward momentum, reaching an intraday high of 1.2691 as the US Dollar weakened. The greenback’s decline gave the British Pound a boost, allowing it to extend its recent gains.
Meanwhile, uncertainty surrounds the Bank of England’s (BoE) monetary policy outlook. Although markets expect a gradual rate-cutting cycle this year, stronger-than-expected economic data has cast doubt on those projections.
As a result, the Pound continues to find support, with investors weighing the possibility of a more cautious approach from the BoE. If economic data remains robust, policymakers may delay aggressive easing, potentially providing further strength to GBP/USD.
On the flip side, uncertainty around US economic performance and Federal Reserve policy will continue to influence the pair’s direction in the coming sessions. Traders will keep a close eye on upcoming UK and US data releases for fresh cues.
Bank of England's Rate-Cutting Outlook and Economic Data Impact on GBP/USD
On the GBP front, the Bank of England (BoE) is expected to follow a moderate rate-cutting cycle this year. However, recent UK economic data has made traders rethink their expectations.
Strong Retail Sales, hotter-than-expected Consumer Price Index (CPI) data for January, and solid wage growth in the last three months of 2023 have led investors to reduce their bets on aggressive rate cuts.
Despite this, money markets still anticipate two more rate cuts this year after the BoE lowered its key interest rate by 25 basis points (bps) to 4.5% earlier this month.
Analysts at TD Securities, however, predict the BoE will cut rates four more times in 2024, citing risks such as potential trade tariffs if Donald Trump wins the U.S. election.
Yet, they have pushed their forecast for the next rate cut from March to May due to stronger-than-expected UK economic data. The uncertainty around monetary policy continues to impact the GBP/USD pair, as traders closely watch for signals from the central bank.
Looking ahead, speeches from BoE policymakers, including Clare Lombardelli, Swati Dhingra, and Deputy Governor Dave Ramsden on Monday, could provide fresh insights into the central bank’s stance.
US Dollar Weakens as Soft Services Data Fuels Fed Rate Cut Bets
On the US front, the broad-based US Dollar edged lower as weak services sector data raised expectations for an interest rate cut by the Federal Reserve (Fed) in June.
This decline was mainly triggered by the US preliminary S&P Global Purchasing Managers Index (PMI) for February, which showed a significant slowdown in business activity.
The Composite PMI rose at a slower pace, increasing only to 50.4 from 52.7 in January, with services sector activity unexpectedly contracting. The Services PMI fell to 49.7, dipping below the 50 mark for the first time in 25 months.
Economists had expected services to expand slightly. The report pointed to political uncertainty, including concerns over federal spending cuts and their potential impact on growth and inflation, as key factors behind the slowdown.
In contrast, the Manufacturing PMI showed positive signs, expanding to 51.6 in February from 51.2 in January, exceeding expectations. This growth in the manufacturing sector is seen as a result of US President Donald Trump’s tariff agenda, which aimed to boost local production.
Looking ahead, investors will focus on key data this week, including US Durable Goods Orders and the Personal Consumption Expenditures (PCE) Price Index, which could provide further clues on the Fed’s next move.
GBP/USD – Technical Analysis
GBP/USD is trading at $1.26401, showing a slight upward movement, maintaining support above the pivot point at $1.26211. This level is crucial as it is reinforced by the 50 EMA at $1.26244, which is acting as dynamic support.
The technical outlook remains bullish as long as GBP/USD stays above this level. A break above the immediate resistance at $1.26896 could propel the pair toward the next resistance at $1.27569, with a potential extension to $1.28233.
On the downside, if prices fall below the pivot point, immediate support is at $1.25660, followed by $1.25087 and $1.24528. A break below the 50 EMA would signal a bearish reversal, increasing selling pressure. However, the overall outlook remains bullish as long as GBP/USD trades above $1.26211 and the 50 EMA.
Traders should watch for a decisive breakout above $1.26896 for a bullish continuation, while a drop below $1.26211 may indicate a bearish pullback.
Related News
- GOLD Price Analysis – Feb 24, 2025